Your Complete Resource for Securing a Malta Gaming License with E&S Group

Are you seeking a Malta iGaming License to launch your online gaming business in a trusted, regulated jurisdiction? With over 15 years of experience, E&S Group offers a comprehensive approach to obtaining your Malta iGaming License, backed by our deep expertise to help you navigate complex regulations with ease. Below, you’ll find all the information you need about the Malta iGaming License to move forward with confidence.

Why Choose Malta for Your Gaming License?

1. Reputable and Trusted Jurisdiction

Malta is a global leader in the online gaming industry, being the first EU member state to regulate remote gaming back in 2004. The Malta Gaming Authority (MGA) is renowned for its rigorous standards, making a Maltese license a symbol of trust and credibility worldwide.

2. Access to the European Market

A Malta Gaming License allows you to operate across all European Union member states. Benefit from the freedom of establishment and provision of services, reaching a vast market of over 500 million consumers.

3. Robust Regulatory Framework

The MGA provides a comprehensive regulatory environment that ensures fairness, transparency, and player protection. Compliance with MGA regulations enhances your brand’s reputation and fosters player trust.

4. Attractive Tax Regime

Malta offers competitive gaming tax rates and a favorable corporate tax system. With effective tax planning, gaming companies can benefit from an effective corporate tax rate as low as 5%.

5. Supportive Business Environment

  • Skilled Workforce: Access to a pool of multilingual and highly qualified professionals with expertise in gaming, IT, and finance.
  • Advanced Infrastructure: State-of-the-art telecommunications and technological infrastructure to support your online gaming operations.
  • Strategic Location: Situated at the crossroads of Europe, Africa, and the Middle East, Malta offers excellent connectivity.

Our Expertise in Securing Your Malta Gaming License

With over 15 years of experience in the gaming industry, E&S Group has assisted numerous clients in obtaining their Malta Gaming License. Our team comprises legal experts, financial advisors.and technical consultants dedicated to ensuring your success.

 

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Understanding the Types of Malta Gaming Licenses

The MGA offers two main types of iGaming licenses to cater to different gaming activities:

B2C License (Gaming Service License)

Allows operators to offer gaming services directly to players. Categories include:

  • Type 1 Gaming Services: Casino-type games played against the house (e.g., roulette, blackjack, baccarat), lotteries, and secondary lotteries.
  • Type 2 Gaming Services: Fixed-odds betting, including sports betting and pool betting.
  • Type 3 Gaming Services: Peer-to-peer games such as poker, bingo, and betting exchanges.
  • Type 4 Gaming Services: Controlled skill games.

B2B License (Critical Gaming Supply License)

For companies providing critical gaming supplies to B2C operators, such as software platforms, game developers, and hosting services.

Detailed Steps to Obtain a Malta Gaming License

Step 1: Preliminary Consultation and Planning

  • Business Model Analysis: We assess your business model to determine the appropriate license type.
  • Strategic Planning: Outline the roadmap for the application process, timelines, and resource allocation.

Step 2: Company Formation and Corporate Structuring

  • Incorporation: Establish a Maltese company to act as the license holder.
  • Corporate Governance: Assist in setting up the board of directors and corporate officers, ensuring compliance with MGA requirements.

Step 3: Preparation of Application Documentation

  • Business Plan: Develop a comprehensive plan detailing gaming operations, target markets, marketing strategies, and financial projections.
  • Policies and Procedures: Draft operational policies, terms and conditions, responsible gaming measures, and AML/CFT procedures.
  • Due Diligence: Collect all necessary documentation for shareholders, directors, and key function holders, including KYC documents, CVs, and police conduct certificates.

Step 4: Submission to the Malta Gaming Authority

  • Fit and Proper Test: The MGA assesses the integrity, honesty, and competence of all relevant persons.
  • Business Planning Review: Evaluation of your business plan and financial sustainability.
  • Operational and Statutory Requirements Review: Examination of your policies, procedures, and system documentation for compliance.

Step 5: System Audit and Technical Setup

  • Technical Infrastructure: Ensure your gaming platform meets MGA’s technical standards, including security, data protection, and fairness.
  • System Audit: An independent auditor approved by the MGA conducts a thorough audit of your systems.

Step 6: License Issuance

Upon successful completion of all assessments and audits, the MGA issues the gaming license, valid for 10 years.

Post-Licensing Compliance and Support

Ongoing Compliance Obligations

  • Regulatory Reporting: Submission of monthly, quarterly, and annual reports to the MGA.
  • Financial Audits: Annual financial statements audited by a certified Maltese auditor.
  • Compliance Audits: Periodic compliance reviews as required by the MGA.

AML/CFT Compliance

  • Policies and Procedures: Implementation of robust AML/CFT measures in line with EU directives and Maltese law.
  • Training: Regular training for staff on AML/CFT obligations.

Responsible Gaming

  • Player Protection Measures: Tools and policies to promote responsible gaming, including self-exclusion, deposit limits, and reality checks.
  • Support Services: Access to support for players exhibiting problem gambling behaviors.

Taxation Benefits in Malta

  • Gaming Tax: Calculated based on gaming revenue, with favorable rates compared to other jurisdictions.
  • Corporate Tax System: Malta operates a full imputation system, and non-resident shareholders can benefit from tax refunds, effectively reducing the corporate tax rate to 5%.
  • Double Taxation Treaties: Malta has an extensive network of treaties, minimizing withholding taxes on dividends, interest, and royalties.

Why E&S Group is Your Ideal Partner

Unmatched Expertise

  • Legal and Regulatory Knowledge: Our team stays abreast of the latest regulatory developments to provide accurate advice.
  • Technical Proficiency: Expertise in gaming platforms, IT infrastructure, and cybersecurity.

Comprehensive Services

  • End-to-End Support: From initial consultation to post-licensing compliance, we offer a full suite of services.
  • Customized Solutions: Tailored strategies to meet your specific business needs and objectives.

Proven Track Record

  • Client Success Stories: Numerous clients have successfully obtained their Malta Gaming License with our assistance.
  • Industry Recognition: Active participation in industry conferences and associations.


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Additional Services We Offer

  • Tax Advisory: Optimize your tax position within Malta’s legal framework.
  • Corporate Services: Company secretarial services, registered office, and administration.
  • Recruitment Assistance: Help in sourcing and appointing key function holders required by the MGA.
  • Banking Solutions: Assistance in opening corporate bank accounts and payment processing arrangements.

Key Functions and MGA Approval for Malta Gaming Licenses

To operate under both B2B and B2C Malta Gaming Licenses, specific key functions must be appointed and approved by the Malta Gaming Authority (MGA). Each role holds responsibility in critical operational areas such as player support, responsible gaming, compliance, and technology. Every key function role has a fixed fee of €50, regardless of whether multiple roles are held by the same individual.

Key Functions for B2C Licensees

For B2C operators, particularly those offering remote gaming services or managing controlled gaming premises, essential roles include:

  1. Chief Executive Officer (or Equivalent): Oversee the executive operations and overall strategy of the gaming business.
  2. Day-to-Day Operations Management: This includes financial responsibilities like tax payments, processing player transactions, managing operational risks, and implementing fraud prevention strategies.
  3. Compliance Management: Ensure adherence to MGA obligations, including responsible gaming policies, player support, marketing regulations, and, if applicable, sports integrity.
  4. Legal Affairs: Manage contractual arrangements, dispute resolution, and other legal issues impacting the licensee.
  5. Data Protection and Privacy Compliance: Ensure that all data handling complies with data protection laws.
  6. Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT): Oversee AML and CFT measures in line with regulatory standards.
  7. Technology Management: Manage the backend systems holding regulatory data and oversee network and cybersecurity measures.
  8. Internal Audit: Conduct periodic audits to ensure operational integrity and regulatory compliance.

Additional Key Functions for Non-Controlled Gaming Premises

For B2C operators managing non-controlled gaming premises, additional functions include:

  • Game Device Operation: Supervise gaming devices that require human intervention, like the bingo urn.
  • Pit and Gaming Area Management: Oversee croupiers, resolve customer disputes, and prevent fraud.
  • Surveillance Management: Operate and manage the premises’ surveillance systems.

Key Functions for B2B Licensees

For B2B license holders, the MGA mandates the following key functions:

  1. Chief Executive Officer (or Equivalent): Responsible for strategic oversight and executive decisions.
  2. Operations Management: Manage daily business operations, financial obligations, tax payments, and risk strategies.
  3. Compliance Officer: Ensure compliance with all MGA obligations, including sports integrity where applicable.
  4. Legal Affairs Management: Handle contractual matters, dispute resolution, and other legal obligations.
  5. Data Protection Compliance: Implement processes to safeguard data in line with privacy laws.
  6. Technology Oversight: Manage regulatory data systems and ensure network and information security.
  7. Internal Audit: Conduct routine audits to verify compliance and operational accuracy.

Each of these roles is crucial for maintaining MGA compliance and operating efficiently within Malta’s regulatory framework. E&S Group provides comprehensive support in appointing and managing these roles, ensuring your gaming operation adheres to every regulatory requirement.

Obtaining and maintaining a Malta Gaming License involves various fees payable to the Malta Gaming Authority (MGA). Below is a breakdown of the required application fees, annual licensing fees, compliance contributions, and applicable gaming taxes for B2B and B2C licensees.

License Application and Renewal Fees

  • Application Fee: €5,000 (non-refundable, payable once during application submission).
  • Renewal Fee: €5,000 (non-refundable, payable upon license expiration after 10 years).

These fees are mandatory, non-refundable, and required regardless of whether the MGA approves the license application.

Annual Fixed License Fees for B2C Licensees

For B2C gaming operators, annual fixed fees vary by the type of gaming services offered:

  • General B2C License: €25,000 annually.
  • Type 4 B2C Operators (controlled skill games only): €10,000 annually.

Annual Fixed License Fees for B2B Licensees

For B2B providers, fees are based on the scope of gaming services and annual revenue:

Critical Gaming Supply License (material game elements):

  • Revenue up to €5 million: €25,000
  • Revenue €5-10 million: €30,000
  • Revenue over €10 million: €35,000

Critical Gaming Supply (software management only):

  • Revenue up to €1 million: €3,000
  • Revenue over €10 million: €5,000

Compliance Contribution for B2C Licensees

The compliance contribution is calculated annually based on gaming revenue and varies depending on the gaming service type.

Type 1 B2C Gaming Services

Minimum: €15,000, Maximum: €375,000

Rates:

  • First €3 million: 1.25%
  • Next €4.5 million: 1.00%
  • Next €5 million: 0.85%
  • Next €7.5 million: 0.70%
  • Next €10 million: 0.55%
  • Remainder: 0.40%

Type 2 B2C Gaming Services

Minimum: €25,000, Maximum: €600,000

Rates:

  • First €3 million: 4.00%
  • Next €4.5 million: 3.00%
  • Next €5 million: 2.00%
  • Next €7.5 million: 1.00%
  • Next €10 million: 0.80%
  • Next €10 million: 0.60%
  • Remainder: 0.40%

Type 3 B2C Gaming Services

Minimum: €25,000, Maximum: €500,000

Rates:

  • First €2 million: 4.00%
  • Next €3 million: 3.00%
  • Next €5 million: 2.00%
  • Next €5 million: 1.00%
  • Next €5 million: 0.80%
  • Next €10 million: 0.60%
  • Remainder: 0.40%

Type 4 B2C Gaming Services

Minimum: €5,000, Maximum: €500,000

Rates:

  • First €2 million: 0.50%
  • Next €3 million: 0.75%
  • Next €5 million: 1.00%
  • Next €5 million: 1.25%
  • Next €5 million: 1.50%
  • Next €10 million: 1.75%
    • Remainder: 2.00%

Malta Gaming Tax

Monthly gaming tax is payable to the MGA and depends on the license class:

  • Class 1 License: €4,600/month for the first 6 months, then €7,000/month.
  • Class 1 on Class 4 License: €1,165/month.
  • Class 2 License: 0.5% of gross bets accepted.
  • Class 3 License: 5% of real income.
  • Class 3 on Class 4 License: 5% of real income.
  • Class 4 License: €0 tax for the first 6 months, followed by €2,330/month for the next 6 months, and €4,660/month thereafter.

Additional Fees for Class 4 Licensees:

Class 4 licensees hosting and managing operators without a Class 1, 2, or 3 license must pay €1,165 per month per hosted operator.

 

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Corporate Tax in Malta for Licensed Companies

Malta-based gaming companies pay a flat corporate tax rate of 35% on worldwide income, including capital gains. However, Malta’s tax refund system provides non-resident shareholders with a partial refund of taxes paid, reducing the effective tax rate significantly. The exact refund rate depends on the profit type and tax account used.

For more details on Malta’s tax refund and participation exemption benefits, contact E&S Group.

E&S Group provides complete support throughout the licensing and compliance process, helping you navigate Malta’s regulatory and tax landscape with ease. Our expertise ensures that every step, from application to compliance, is handled professionally and effectively.

Below is a video where one of our iGaming Lawyers breaks down the advantages and requirements of a Malta iGaming License:

Frequently Asked Questions

1. What are the capital requirements for a Malta Gaming License?

  • Initial Capital: The MGA requires minimum issued and paid-up share capital, varying by license type:
    • Type 1 and Type 2: €100,000
    • Type 3 and Type 4: €40,000
  • Ongoing Solvency: Operators must maintain adequate financial resources to ensure operational solvency.

2. How long does the licensing process take?

  • Timeline: Typically between 4 to 6 months, depending on the completeness of the application and responsiveness during the process.

3. What are the key functions that must be based in Malta?

  • Key Function Holders: Roles such as the CEO, Compliance Officer, MLRO (Money Laundering Reporting Officer), and Player Support must be filled by individuals residing in Malta or within close proximity.

4. Can we offer cryptocurrencies as a payment method?

  • Regulatory Stance: The MGA has initiated a sandbox framework for the use of Distributed Ledger Technology (DLT) and virtual currencies. Operators interested must comply with additional guidelines and obtain approval.

5. What are the player fund protection requirements?

  • Segregation of Funds: Operators must keep player funds separate from operational funds.
  • Financial Safeguards: Adequate measures to ensure player balances are protected in case of insolvency.

6. Are there any recent regulatory changes we should be aware of?

  • Continuous Updates: The MGA frequently updates its regulations to align with EU directives and technological advancements. Our team ensures you are informed of any changes that may affect your operations.

7. How does Brexit affect UK players?

  • Market Access: Malta-licensed operators may need to obtain additional licensing to offer services to UK players post-Brexit. We can assist in exploring regulatory options.

Begin Your Licensing Journey with E&S Group

Embarking on the journey to obtain your Malta Gaming License doesn’t have to be daunting. With E&S Group’s expertise, you can navigate the complexities confidently and efficiently.

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    Testimonials

    “E&S provides comprehensive, holistic and dedicated professional services related to company incorporation, Advisory, Risk & Compliance, Tax & Legal, Accounting and others. In the past 6 years, I have used most of these services and the company has very competent employees and professionals who understand the scope of the work and seek to deliver excellence in all the tasks they adhere to.

    E&S can be considered as a one-stop shop services provider especially for start-ups. I will not hesitate to recommend E&S to others who want to use the professional services they offer due to their service oriented, and high level of professionalism.”

    Michael Gatt – Global Gaming Group (CFO)

    “I always feel at ease when E&S’s legal team answers our Human Resource questions from the perspective of the company. They are not only very responsive to any questions, but also extremely patient. E&S are aware of the requirements of our organisation and, if they foresees any issues, advises us accordingly. I wholeheartedly recommend E&S Group to my other co-workers with particular reference to Dr Anthea and Dr Jade who are very reliable to handle inquiries.”

    Kathleen Dilley – Royce Technology

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